FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Eastlakes Small Business Loans
Tell me how you are able to avail the Eastlakes Small Business Loans
Eastlakes unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from an ordinary company loan?
It is imaginable to apply to this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and have the funds in your account within 24 hours. Traditional company loans are based on an annual rate of interest as well as other fees and charges. The company loan is an upfront priced loan which means you know in advance the total amount payable including any interest, fees or charges. This is then broken down into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for nearly every business need, such as cash flow management, company remodeling, marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal reasons.
About larger Eastlakes Business Loans
What is the Larger Eastlakes Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been in operation for at least 3 years and have an annual turnover of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can the funds be used for?
A Business Loan of a larger size can be used for nearly every business reason, such as company renovations, to purchase inventory or new equipment for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. It is usually by taking a charge against assets, which could also be registered on the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is general in nature, rather than stating security over a particular asset. The person who signs the guarantee is personally liable in the event that the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including objects or assets). The PPSR permits the priority of personal property granted according to the date the registration of a security interest.
Caveats are legal form of document to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan that is greater than $250,000 we may be able to provide a preliminary pre-approval to help smooth out the process. We might be able to do this without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial health questions. It is in no way an offer, nor is it a guarantee of finance. A conditional approval is subject an assessment of your creditworthiness and any offer you may receive may be on different conditions.
Application process
Can I be eligible for funding?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in few minutes and a dedicated business credit specialist will call you to help you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s License), a valid NZBN/IRD and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent twelve months of bank records, IRD statement Last 2 years’ finalised financial statements, plus interim financial statements for the current year as well as Aged Payables and Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually offer an answer in just one hour – as long as you make your application at standard business hours and permit us to utilise the bank verification system to immediately verify your bank account information online. If you choose to send us copies of your bank statement, we’ll provide an answer within just an company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be likely to offer you with pre-approval conditional to your application within about six hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be quicker based on the specifics of each application. Some agreements have been approved in just 24 hours.
The quickest method would be to ensure you apply during standard business hours. You can also let us use the modern bank verification link to verify your bank account information online. If you choose to upload documents from your account accounts, it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we typically provide an answer within an hour – as long as you make your application at standard business timings and permit us to utilise the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements, we will be able to offer the decision within the span of one business day.
For the Larger Business Loans ($100K up to $500,000) we could be likely to provide you with conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Certain offers have been approved in the space of 24 hours.
The most effective method is to ensure you apply during standard business hours. You can also let us use the advance bank verification link to instantly verify your bank account information online. If you choose to upload the copies of bank statements it can take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a particular amount, we take into consideration a range of aspects to determine how much we can lend you well-being of your company and the amount of the repayments your business will be able to support. The amount you receive from your loan will be contingent on the specifics that are unique to your business.
When you submit an application for a particular amount, we look at a range of variables to assess how much we can lend you such as health that is your business and the extent of repayments your company is able to afford. The amount you receive from your loan will be contingent on the particulars the business.
Fees & repayments
What is the cost for an company loan?
When you request one of our business loan, we’ll assess the risk profile for your business and provide an individualised offer that includes the loan amount, the terms and interest rates. This company loan is a loan that is priced upfront therefore you will know the exact amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I pay?
The interest rates on business loans rates depend on a variety of factors like the amount of money of money borrowed, the business assets the money are used to purchase and the sector the business operates in, the long the business has been in operation as well as in the event that the company has sufficient cash flow to fund the loan, and the general well-being or financial standing of the business.
What are the charges?
There are no hidden fees with our business loans, and you’ll be aware of the amount it is that you be required to pay and when, from the very first day. There’s no compounding interest and there are no additional charges (as as you make your payments punctually).
We don’t charge an application fee. You can get a cash loan no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan earlier?
You can repay the entire amount of the loan at any point in time.
If you are deciding to pursue this option, please talk to one of our helpful company loans experts. We will provide you with the details of your repayment as well as an early payout amount. The figure will be calculated as the sum of the principal balance and the accrued interest up to the time of early payout in addition to 1.5 percent of the principal balance and any outstanding fees.
What are the repayment methods?
To make sure you do not miss due dates and also to be in line with your cash flow routine, we provide payments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
Security of your data, and making it clear the ways we gather data, process, exchange and secure your information, is crucial and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our clients and privacy. We use an advanced bank verification system to instantly confirm your bank account information online to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an business owner makes use of an asset that they own to obtain the funds for a loan. The asset can be either a personal asset like the family home, or a company asset such as a vehicle or piece of equipment.
The vast majority of banks, including the big banks, tend to secure loans against assets. If you are having difficulty paying back the loan, then your asset may be offered for sale by the lender. In essence it is a way of securing additional financing making use of the value of what you already have.
Are I require security to secure an business loan?
For loans up to $150,000 no asset security is required prior to the loan’s access but we do require the personal guarantee. So long as you comply with the terms of your loan (as specified in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally, you can get an individual ensure and security in the form of charges on assets.